Federal Reserve System Issues Proposed Rule on Jumbo Mortgage Loans
The Federal Reserve Sytsem has issued a proposed rule under Regulation Z issued pursuant to the Truth in Lending Act. The proposed rule would implement Section 1461 of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 1461 amends TILA to provide a separate, higher threshold for determining coverage of the Board’s escrow requirement applicable to higher-priced mortgage loans, for loans that exceed the maximum principal balance eligible for sale to Freddie Mac.
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